Struggling with debt? Ask a debt adviser a question

Former_E.ON_Company_Representative:_Malc

Julianlzb87 wrote: »

AAsking for a friend., really... a female pensioner.
About 15 years ago my friend moved into a new block of, all electric, Housing association flats.
For some reason, possibly because the building work was not complete residents were given
a years free electricity.

But after the first year no one started to receive bills and obviously (but foolishly) no one made a fuss about not being billed..

Then, 4 years later, huge back dated electricity bills arrived... say £2000

My friend was put on to a key meter, guessing near highest rate, and has been there
ever since, 10 years, and still the debt has hardly shrunk.

It looks like she will be stuck in the situation forever, unable to switch etc. and probably still be in debt. Yes, it's no one else's fault, better initial billing might have helped, but it is what it is now.

I'm kind of thinking this situation might not be rare even though how it comes about will differ.
My question is... Is there anyway out of this for someone who couldn't get cheap credit to get rid of the old debt?

Charities? Sink funds? Obscure privatisation legislation? Anything at all?
Now it is out in the open there maybe a chance of a friends and family whip
but on a general level that might not be available to everyone.

The supplier is EON

Hello Julianlzb87 and welcome to the Forums.

Thought I'd pop on to let you know about a scheme we have that might be of interest to your friend if they're eligible. We set up the E.ON Energy Fund a few years ago to help vulnerable residential customers who are struggling with their energy costs.

The fund helps with energy bill arrears as well as with the replacement of white goods. There's more information on our website including what's needed to qualify and an application form.

Also, has your friend applied for Warm Home Discount? If not, they can still apply but need to do so quickly as we're looking to close this year's scheme soon. Applications can be made online through our website and, if successful, a voucher for £140 will be sent. This can be taken to the local Post Office along with a form of identification. The Post Office will use the voucher to credit the prepayment key. This can then be transferred to the meter in the same way as when topping up.

Hope this helps your friend Julianlzb87.

Malc

collu

Hi, a default judgement CCJ was recorded against me for £349 at an old address for a payday loan account I defaulted on in February 2010 – the judgement was dated September 2018. I applied for a set aside and the claimant agreed to consent to this. The set aside was granted on 2nd January 2019.

I filed a defence of Statute Barred as I am sure I have made no payments or acknowledged this debt since early 2010. I received a directions questionnaire from the court for the new allocation.

The claimants solicitor have stated the claimant wishes to proceed with the claim and ticked yes to mediation by the small claims mediation service on their questionnaire.

I do not feel there is anything to mediate and am minded to tick no. I am however aware that the court likes to see some attempt to settle disputes before they reach a hearing and that I would leave myself open to costs being awarded against me in the unlikely event of the claim succeeding

My question is do I merely tick yes to mediation or do I send a letter to the claimant as below to cover myself over attempts at agreement pre court – I would have to settle if they had such proof anyway but I cannot find any reference in my records nor do I remember doing any such thing.

Example letter:
Re xxxxxxx v xxxxxxxx
case: Exxxxxxxxx ,In the County Court at Leeds

Thank you for your service of the completed directions questionnaire in the above matter.

I enclose two copies of my completed questionnaire, one for yourself and one for your client.

I have ticked “yes” to the matter being referred to the Small Claims Mediation Service but I fail to see how this will help. The claim stands or falls on whether or not the alleged debt was statute barred at the commencement of your claim.

In the interests of not wasting the court's valuable time but in no way acknowledging the alleged debt I would be prepared to directly negotiate settlement of your claim if;

1. You provide me with details of the original agreement with money amounts and dates.

2. You supply me with the evidence you wish to rely on, satisfactorily verifiable by myself, in support of your contention the alleged debt was not statute barred at the commencement of your claim.

within the next twenty-one days.


I await your reply with interest.

A copy of this letter has been sent to the court with my completed directions questionnaire.


Yours


xxxxxxxxxx- Defendant

StepChange_Rachael

Hi Steven719

Welcome to the forum and thanks for your post.

I can see it’s been a very difficult time for you and thanks for explaining your situation in the forum, I appreciate it can be difficult to ask for help and to discuss the difficulties you’ve been going through. It sounds like you’ve been though more than most but i'm glad to hear you’re making good progress to get back to your old self.

There’s certainly a way forward with the debts that you have and to become debt free. There are many different solutions and with the help of a debt advisor they’ll help you find the best route forward and the support you need. As you’ve mentioned you’re self-employed I’d recommend speaking with the Business Debtline who can help you find a realistic and manageable solution taking into account your business. You don’t need business debts to get their advice and help.

If you’ve not already done so, I’d also recommend getting support to help you emotionally recover from the addiction and the stress and worry of your mum’s illness. Your GP should be able to provide you with the organisations that will be able to help you best.

A few organisations that I’m aware of that will be able to offer support going forward are Mind and the Samaritans. You can also speak safely and discreetly with StopLoanSharks regarding any concerns over illegal lenders.

I hope this helps.

Please remember there is help and support available.

Take care,
Rachael

Steven719 wrote: »

So since 2016 I’ve taken drugs, got in to debt, lost my job, suffering with depression and the drs said I had an ocd issue which they gave me tablets, my mum has had cancer several times and it all just got to much. I’ve thought of taking my own life as I just don’t see a way out of this.

This year I’ve been doing little bits of work trying to get abit of an income but nothing permenant. At the end of 2018 I am at the lowest possible place I could be. 2019 has came and I want to fix this mess I have 36k of legal debt by this I mean debt through creditors never mind the additional debt I have with people now threatening my life.

Enough is enough and I want to sort this out since the start of this year I’ve locked myself away and I’ve been free of any drugs since the start of the year my heads coming together and I want to sort out my finances so I can correct my life and be the happy young lad I used to be it’s so hard for me writing this but I want to fix this hell I am in I still suffer with a few withdrawal symptoms but I’m fighting my demons.

I’m actively looking for work, in 2018 I did do bits of work and I earnt a decent wage but it just funded my drug habit which blocked away the pain and hurt.
I don’t want to fall back, I want to fix this now and finally get my life on track.
Currently I am self employed and some weeks I’m earning nothing and some I do. I’m trying to get more and more work in but as you can imagine I’m also trying to recover from drugs it’s hard.

I just don’t know how to fix it please help me, please.

StepChange_Rachael

Hi

Thanks for posting on the forum.

You’re certainly in the right place. The debt advice forums on MSE can offer a lot of help and advice to support you going forward.

I understand, any amount of debt can be stressful and worrying if you’re struggling to find a way forward.

I think it’s really important that you get tailored debt advice, especially as you’ve mentioned having mortgage arrears. I’d always advise household expenditure such as mortgage or rent arrears to be prioritised ahead of un-secured debts and you might need specialist advice regarding this area.

To be able to offer accurate advice a full income and expenditure budget is important.

There are a few organisations that offer free advice and it’s certainly something we can offer at StepChange if you’d like to contact us you can find our contact details here.

Thanks,
Rachael

magic_fairies wrote: »

HI
first of all I didn't even know how to post. hope fully im in the right place.
where do i start?
ok here goes, im in debt to around £17000, which includes
mortgage £5500
Car Loans £4200
Personal Loans £1000
Credit Cards £4000
Family loan £2000

it seems like im digging deeper and its making me ill.
ive looked on these posts and ive realised my debt is probably lower than most but that doesnt mean its any easier.

what the eck do i do.... i cant release equity in my house because im in debt with mortgage, which in all honesty the equity could clear the lot. i cant take out a big loan to pay it off as my credit rating is really bad. where do i turn

please help

StepChange_Rachael

Hi Julianlzb87

Welcome to the forum.

I’m sorry to hear about your friend. I appreciate it must be very frustrating for her not seeing much progress on the key meter debt after such a long time.

I can see that someone on the forum has already replied from EON regarding possible schemes your friend might be entitled to.

I’d definitely recommend your friend talking to EON directly and enquiring about such schemes and grants. It’s usually best to ask the utility company first.

There are organisations where your friend would be able to apply for help and support such as Turn2Us and Charis Grants.

I hope they are successful in getting help going forward.

Take care,
Rachael

Julianlzb87 wrote: »

AAsking for a friend., really... a female pensioner.
About 15 years ago my friend moved into a new block of, all electric, Housing association flats.
For some reason, possibly because the building work was not complete residents were given
a years free electricity.

But after the first year no one started to receive bills and obviously (but foolishly) no one made a fuss about not being billed..

Then, 4 years later, huge back dated electricity bills arrived... say £2000

My friend was put on to a key meter, guessing near highest rate, and has been there
ever since, 10 years, and still the debt has hardly shrunk.

It looks like she will be stuck in the situation forever, unable to switch etc. and probably still be in debt. Yes, it's no one else's fault, better initial billing might have helped, but it is what it is now.

I'm kind of thinking this situation might not be rare even though how it comes about will differ.
My question is... Is there anyway out of this for someone who couldn't get cheap credit to get rid of the old debt?

Charities? Sink funds? Obscure privatisation legislation? Anything at all?
Now it is out in the open there maybe a chance of a friends and family whip
but on a general level that might not be available to everyone.

The supplier is EON

StepChange_Rachael

Hi

Thanks for posting.

I’m sorry to hear you’ve been left in a difficult situation. If the payments are a struggle and you’ve concerns about the total debt then a consolidation loan may not be the best way forward.

Consolidation loans can be useful if it’ll bring down the interest, reduce charges and make the payment more affordable, however, our experience is that this usually doesn’t solve the problem in most circumstances. We find people generally still struggle with payments and the added interest.

The only way to find out if you’d be eligible is to apply, there’s usually a way to do this as a soft search to limit the impact on your credit file. However, I’d recommend before applying for a consolidation loan, to speak with a debt advisor. At least then, even if you decide to go down the loan route you’ll have a good idea of all the options available to you so you.

You can find free advice and explore your options through StepChange.

Thanks
Rachael

slellis wrote: »

Hi all,

I’m looking to possibly consolidate £8k which is across 2 credit cards and 2 catalogues.
After a 7 years, things ended with my partner, we were slowly paying things off but not getting anywhere, and he was paying the minimums. All of the credit was taken out in my name as he has previous bad debt history, and now he’s left, I’m left to deal with it. Biggest mistake I ever made, but now needs sorting.

I’m a single working mum, and have been advised by my friend who works in the bank to get a consolidating loan to reduce monthly outgoings as I cannot afford the minimum payments on my own.

Any thoughts or advice would be welcomed!
I’ve been worried about applying for a loan due to the amount outstanding (I have two cars on finance, one my own and the other my exes though he is paying me each month for that), so I worry I won’t be accepted as my wages aren’t high and large amount outstanding.

Thanks for reading!

kaattiieex

Hi,

I really need some help.

I am saving for a house and that is my main priority but I have quite a bit of debt. I don't want to use my savings to pay off the debt as my family don't know that I am in debt but they know how much I have saved. (Long story but i'm ashamed to tell them)

My total debt is £15,537.92 as of today but that is including a loan that I had taken out at the bank which isn't too much of a worry at the moment. I want to get the credit cards cleared first and their total balance combined is £6837.62. I have a Virgin Credit card (£4825.47) which is new as I did a balance transfer (from my HSBC credit card) as it was interest free for X amount of months. I also have a Tesco Credit card (£2012.15) which I took out originally as a money transfer card as I was in my overdraft which has a limit of £1000. I pay £150 a month on my Virgin Card and £100 a month on my Tesco card.

I feel like i'm just drowning in it and can't see the wood through the trees.

StepChange_Kirsty

Hi Collu,

Thanks for your post and welcome to the forum.

As the mediation is free in the small claims track it would be worth ticking yes to mediation to see what this can resolve. Mediation is overall likely to be cheaper and faster than proceeding to a hearing.

Contacting the creditor to try to resolve the case outside of court is also useful. It may also be worth making sure any correspondence sent to the creditor is filed with the court for their information.

Now that the case has been allocated to the small claims track and the creditor wants to proceed you may wish to seek independent legal advice. Citizens Advice may also be able to provide you with additional help and support.

I hope this helps,

Kirsty

collu wrote: »

Hi, a default judgement CCJ was recorded against me for £349 at an old address for a payday loan account I defaulted on in February 2010 – the judgement was dated September 2018. I applied for a set aside and the claimant agreed to consent to this. The set aside was granted on 2nd January 2019.

I filed a defence of Statute Barred as I am sure I have made no payments or acknowledged this debt since early 2010. I received a directions questionnaire from the court for the new allocation.

The claimants solicitor have stated the claimant wishes to proceed with the claim and ticked yes to mediation by the small claims mediation service on their questionnaire.

I do not feel there is anything to mediate and am minded to tick no. I am however aware that the court likes to see some attempt to settle disputes before they reach a hearing and that I would leave myself open to costs being awarded against me in the unlikely event of the claim succeeding

My question is do I merely tick yes to mediation or do I send a letter to the claimant as below to cover myself over attempts at agreement pre court – I would have to settle if they had such proof anyway but I cannot find any reference in my records nor do I remember doing any such thing.

Example letter:
Re xxxxxxx v xxxxxxxx
case: Exxxxxxxxx ,In the County Court at Leeds

Thank you for your service of the completed directions questionnaire in the above matter.

I enclose two copies of my completed questionnaire, one for yourself and one for your client.

I have ticked “yes” to the matter being referred to the Small Claims Mediation Service but I fail to see how this will help. The claim stands or falls on whether or not the alleged debt was statute barred at the commencement of your claim.

In the interests of not wasting the court's valuable time but in no way acknowledging the alleged debt I would be prepared to directly negotiate settlement of your claim if;

1. You provide me with details of the original agreement with money amounts and dates.

2. You supply me with the evidence you wish to rely on, satisfactorily verifiable by myself, in support of your contention the alleged debt was not statute barred at the commencement of your claim.

within the next twenty-one days.


I await your reply with interest.

A copy of this letter has been sent to the court with my completed directions questionnaire.


Yours


xxxxxxxxxx- Defendant

StepChange_Kirsty

Hi there,

Thanks for your post and welcome to the forum.

Whilst I appreciate you don’t want to use the savings in order to repay your debts this would very much be the simplest way forward for you in the circumstances. The interest you’re paying on the debts is very likely to be outweighing the interest you are gaining on the savings. There is a very useful article on the main MSE website which covers the main points to consider which you can find here.

The other consideration is that whilst you have the debts it may impact your chances of getting the best mortgage deal when the time comes to apply.

If using your savings is still not an option it’s important to try to reduce these debts as much as possible whilst you can. It’s important to maintain at least minimum payments to all of your creditors to avoid an impact on your credit rating but you could then try to focus on paying extra to the line of credit which is currently costing you the most each month until it’s clear and then move onto the next. Don’t forget your overdraft as overdraft debt tends to be very costly.

If you’re struggling to maintain payments to your creditors StepChange can provide you with free help and advice. The easiest and quickest way to get help is by using our online Debt Remedy tool. This guides you through the process of putting a budget together and will offer you advice in the form of a personal action plan.

I hope this helps,

Kirsty

kaattiieex wrote: »

Hi,

I really need some help.

I am saving for a house and that is my main priority but I have quite a bit of debt. I don't want to use my savings to pay off the debt as my family don't know that I am in debt but they know how much I have saved. (Long story but i'm ashamed to tell them)

My total debt is £15,537.92 as of today but that is including a loan that I had taken out at the bank which isn't too much of a worry at the moment. I want to get the credit cards cleared first and their total balance combined is £6837.62. I have a Virgin Credit card (£4825.47) which is new as I did a balance transfer (from my HSBC credit card) as it was interest free for X amount of months. I also have a Tesco Credit card (£2012.15) which I took out originally as a money transfer card as I was in my overdraft which has a limit of £1000. I pay £150 a month on my Virgin Card and £100 a month on my Tesco card.

I feel like i'm just drowning in it and can't see the wood through the trees.

CoxxyB

NatWest £8140 - minimum £178.47
MBNA £12,561 - minimum £322.46
Barclays £9260 - minimum £202.37
TOTAL £29,961

Hello - looking at the above makes me shudder..... I wonder what my chances are in contacting each company and letting them know that we are struggling to make the minimum payments. We have never missed a payment or had any late charges added. The cards are solely in my name but the debt is shared between me and my husband. I am more than happy to pay what I can afford (I am going to put together a list of incomings and outgoings) but I don't want to enter into a DMP if at all possible. I have cut up NatWest and MBNA - but my husband has been using the Barclay card and i've told him he needs to stop using it to bridge gaps.... I appreciate that contacting the card companies letting them know my situation will impact on my credit rating, but is contacting them first explaining that I cannot afford to pay minimum better than not paying them at all? I hope this paragraph makes sense..... Can somebody give me some advice please?